Over the course of the past decade, we've seen a tremendous up-tick in the use of privately chartered air travel. We've seen this come about in various forms, including fractional ownership of various planes. Further, companies have sprouted up, that have catered to the on-demand charter demand of the market. What on-demand actually implies is that the reservation of the plane can be booked in a moment's notice, and if the inventory is there for the member to book a particular resource, then that arrangement will be made by the company.

Over the course of the past 10 to 15 years, we've seen a number of smaller businesses buy up a number of fleets, in order to pursue just this business model. Businesses make up the bulk of these flights. What people often conjure up when they think of a private jet flight is the affluent billionaire or the Hollywood star, jetting across the globe, in order to make some frivolous appointment. But what most people don't realize is that the bulk of these on-demand charter flights are expensed by some business entity, in order to keep up with tax efficiency. When a celebrity books a flight, for example, it's usually in conjunction with some sort of business. Often, the celebrity is promoting a product, a movie, or doing PR for some other business purpose. In those cases, each flight is considered a business expense. And so, some business, somewhere within the accounting of that celebrity's business matters will be expensing the cost of that flight. Same goes with most affluent people where taxes are an issue.

Take any of the self-made billionaires in the U.S. Many of these individuals are billionaires due to some sort of business success, and consequently, activities such as privately chartered flights, are usually expensed in some way, shape, or form. And this all has to do with the exorbitant amounts that are involved in operating an on-demand charter flight. You have to think of not only the aircraft itself, which will run in the tens of millions of U.S. dollars; but you have to think of the personnel as well, that will be operating the aircraft: the pilots, the flight attendants, etc. And that's just during the flight. What about parking the vehicle? What do you do when you need to get the aircraft serviced or if you need to repair something about the private jet? For these reasons, it makes more sense for people (even those that can afford to purchase a jet outright) to become a member of an on-demand charter club, than to buy aircrafts outright. This is a trend that's likely to continue for some time.

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